UpMach Prospect

The UpMach Prospect is the largest prospect in the portfolio, located 120 miles southwest of Houston in Goliad and Victoria Counties and will be drilled to 14,200 feet by Tempest Exploration. The prospect is an Upper Wilcox upthrown fault closure, two 3D amplitude-based Middle Wilcox stratigraphic traps and a Basal Middle Wilcox faulted four-way closure. All four potential reservoirs are vertically stacked and are independent of each other, which creates an opportunity to test multiple, highly economic prospects with one vertical wellbore.

Total potential reserves net to KEI are 17.4 to 54.7 BCF equivalent, but the majority of the upside case reserves would require additional development drilling to capture. KEI will have 25% working interest in the well through payout and 18.75% all subsequent operations. KEI's proportionate estimated costs are US$283,333 for land, US$935,330 drilling and, if successful, US$538,863 for completion.